The transition from startup to scaleup is far from inevitable and scaleups are more the exception than the rule. In Europe and Germany approximately 9-11% of businesses annually are considered high-growth firms. The dilemma of why so few startups are able to transition to scaleups and continue to grow and become large, preferably huge businesses is the focus of our study. In addition to many articles and theories on earlier-stage startup survival, our ongoing research scientifically proves there are new and different internal organisation and management factors at play during scaling and these influence the probability a venture will successfully transition to a scaleup.
Conducted among a ten-year panel of over 3,700 German startups and scaleups at the revenue generation stage, the preliminary findings show that when controlling for known and external factors that can influence differences in growth, there were three significant internal organisational factors that improve the probability a startup will transition to scaleup.